Is it full speed ahead in the markets again?

The mood seemed to change in the stock market Thursday. After a disappointing Wednesday where early gains were given up and then turned into losses, the major indexes rose Thursday. But looking at the magnitude of the move, not much really changed. Yet the mood of traders seemed to turn. What can you read into that?

Everyone has a market bias whether they try to trade without it or not. And everyone likes markets moving higher over then moving lower except for a couple of perma-bearish pundits and bloggers. So I read into this that there is fear. Fear of a larger pullback. That is just the normal human brain reaction to uncertainty and high levels in the market. We are wired this way.

But there is something more that came out of Thursday. Along with a sentiment shift, not in the surveys, but in the chatter, came the minor moves higher. Nearly unnoticed was the Nasdaq 100 ETF ($QQQ) making a new all-time high close. The Russell 2000 ETF ($IWM) pushed above short term resistance. And the S&P 500 ETF ($SPY) did the same.

Momentum started to shift in each of these charts as well, with the RSI for the SPY and IWM making new 1 month highs and the MACD crossing up for all 3. These are all positive signs for higher markets in the near term, especially with follow through Friday and through month end next week. Time to look for ideas to move higher, maybe not full steam ahead yet, but moving out of port.

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